Company Reports

MS 1Q21: Diversification Pays as Archegos Pains

MS had a blow out revenues quarter driven by SPAC and equity effervescence. Other areas in M&A and fixed income were very strong too. But it got partially blown up on Archegos mass liquidation vortex. Still Buy on stock, Move to Buy on benchmark bonds, Very Low systemic risk, Low counterparty risk. 

Industry Reports

WFC 1Q21: Chipping Away at Business Sludge, Still Much To Do

WFC does not have the core drivers gas to justify its stock surge. EPS beat was on reserve releases and restructuring needs to continue. Still some small progress on business/asset sales. Move to Neutral on stock, Sell on benchmark bonds. Regulatory and counterparty risk remains High. 

Topic/Theme Reports

Citi 1Q21: Strategy Refresh, Paints Over ole CEO Sandy Weill’s Vision

Citi comes up with another strategic refresh plan. But new CEO Fraser seems more convincing as she focuses on Citi's competitive advantages. Move to Neutral on stock and benchmark bonds. Regulatory and counterparty risk at Medium levels.